• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

growth valuation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › growth valuation

  • This topic has 3 replies, 2 voices, and was last updated 4 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 24, 2022 at 9:02 am #649240
    nmenon3
    • Topics: 6
    • Replies: 43
    • ☆

    a firm maintains a 30% pay out ratio. future projects are expected to generate an annual post tax return on investment of 15% an dpre tax return of 20%. what is the firms expected annual rate of growth?

    February 24, 2022 at 11:31 am #649269
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    There is no point in simply typing out a full question and expecting to be provided with a full answer. You must have an answer in the same book in which you found the questions, so ask about whatever you do not understand in the answer and I will explain.

    This is simply asking you to use the Gordons growth approximation formula that is given in the exam, and I explain how to use the formula in my free lectures.

    February 28, 2022 at 7:10 am #649492
    nmenon3
    • Topics: 6
    • Replies: 43
    • ☆

    yes I understand sir, the doubt is whether we have to use pre tax return or post tax return on investment?
    sorry for the incomplete question

    February 28, 2022 at 8:12 am #649496
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    Post-tax (because it is only the post-tax amount that is available to pay dividends and available for re-investment).

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • mannannagpal on Sources of data – ACCA Management Accounting (MA)
  • mannannagpal on Sources of data – ACCA Management Accounting (MA)
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on The valuation of securities – The valuation of equity – ACCA Financial Management (FM)
  • John Moffat on Objectives of organisations – ACCA (AFM) lectures

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy